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Committee approves water and wastewater bill with 'three-strikes' expansion and liability protections, 9-3
Summary
Senate Bill 426 expands the existing "three-strikes" enforcement process to include small water utilities, adjusts acquisition and recovery authorities for distressed systems, and includes legal protections for utilities meeting government water-quality standards; vote was 9-3.
The Utilities, Energy and Telecommunications Committee voted 9-3 to pass Senate Bill 426, a multifaceted measure addressing water and wastewater utility regulation, acquisitions of distressed systems, recovery of deferred depreciation and a legal defense for utilities that deliver water meeting government standards.
Senator Cook, sponsor of the bill, described five elements: (1) apply the three-strikes process to certain non-jurisdictional water utilities; (2) give the IURC more flexibility when considering acquisitions of distressed utilities; (3) allow recovery of deferred depreciation and carrying costs when assets go into service; (4) establish a government-standards defense for water-quality claims; and (5) prohibit the Department of Natural Resources from removing or closing a dam if doing so would impede water service or private wells.
Drake Abramson of Indiana American Water supported the measure, saying it will help facilitate regionalization and consolidation where small systems need investment and management. Abramson said the bill also protects customers from cost increases driven by lawsuits that seek standards more stringent than those set by regulatory agencies.
Consumer advocates were cautious or opposed. Kerwin Olson of Citizens Action Coalition said the liability language raised concerns: "Somebody, a non-lawyer like myself, reads it in and basically says to me that if somebody drinks some poison water delivered by their water utility, they can't sue that water utility. That's a bridge too far," he said, while noting CAC's position was neutral overall.
Representative Matt Pierce said he supported the policy thrust of helping troubled systems but was concerned about omission of a "gross negligence" exception commonly used to preserve legal recourse where a utility acts recklessly. Senator Cook said he and stakeholders would work on clarifying language.
The roll call recorded nine ayes and three no votes. Recorded no votes were Representatives Matt Pierce, Carrie Hamilton and Representative Burton. The bill advances to the next legislative stage for further consideration and potential technical cleanup.
Votes at a glance: Move to pass — motion moved and seconded; outcome: passed. Tally: yes 9, no 3.
